Starbucks’ NFT program could lead to more digital collectibles integrations with big brands • TechCrunch

Like the world continues to become more digital, the demands and needs of consumers are changing – and NFTs can be a big part of the future for brands looking to shake up their rewards programs, said Adam Brotman, co-CEO and co-founder of Forum3. TechCrunch.

“We’re hearing from a lot of other brands, whether they have a loyalty program or not, that what all big brands are struggling with right now is that the consumer is changing,” Brotman, who is also the former chief digital officer of Starbucks, said. “It’s not just Gen Z or millennials, but the consumer in general has become more hyper-digitalized and appreciates digital goods more.”

At the beginning of this month, Starbucks launched a blockchain-based loyalty program and NFT community called Starbucks Odyssey. The initiative was launched through a partnership with Forum3, which helped build out the coffee giant’s NFT project, Brotman said.

In September, Starbucks said it envisioned the program as a way for its most loyal customers to earn a broader, more varied set of rewards beyond the perks they can get today, like free drinks. Instead, Odyssey is introducing a new platform where customers can engage in interactive activities called “Journeys” that, when completed, allow members to earn collectible Journey Stamps — which is Starbucks’ less technical terminology for NFTs.

Aside from Starbucks, web3 customer loyalty-focused Forum3 has worked primarily with consumer brands, retailers (including restaurants), sports leagues and direct-to-consumer subscription companies, Brotman said.

“Odyssey is an extension of the Starbucks loyalty program,” noted Brotman. “It’s an opportunity to innovate and expand loyalty.”

Separately, earlier this year, Nike launched an NFT and metaverse platform, .Swoosh, which will allow shoe fanatics to shop and create digital “wearables and virtual sneakers.”

A loyalty program is often centered around giving something to customers in return for their loyalty to a brand, Brotman said in a blog post. “What does the brand give back? Discounts and digital convenience, such as remembering your favorite items, address and payment methods, suggesting items and allowing you to order in advance.”

But what if these digital points, or royalty rewards, could actual be owned by customers? That’s where NFTs, or true digital ownership, come into play — providing a “much more immersive loyalty layer,” Brotman said. It allows customers to receive points and digital collectibles that they own and can use in ways beyond what a typical rewards program allows today.